Natural Gas Weekly Price Forecast – Natural Gas Continues to See Confusion

Natural Gas Weekly Technical Analysis

The natural gas market fell pretty significantly during the week, but only to turn around and show signs of $3 being a magnet for price. If we can break above the top of the candlestick, then it opens up the possibility of a move to the $3.15 level. If we were to break down below the candlestick for the week, it opens up the possibility of a move down to the $2.50 level, where the 50-week EMA is currently hanging around.

If we can break above the top of the shooting star from the previous week, meaning basically $3.20, then natural gas could go looking to the $3.50 level. Keep in mind that the natural gas markets are highly sensitive to weather as we head into the winter in the United States. However, when I look at this chart, you could make an argument that we are in the midst of trying to determine whether or not we are in the double top.

So, it is worth showing the market the correct amount of respect here because it is such a technical market. I do think that dips continue to get bought though. So, I’m not really looking to short the market, at least not yet. If we were to break down towards the $2.75 level, then possibly I would get short. But at that point, I would have to drill down to lower timeframe charts to really get a feel on what’s going on.

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